Depression, the trade (in relation to income) was lower than it had been in 1914. Due toincreased multilateralism, the United Nations, the International Monetary Fund, andtreaties like the General Agreement on Tariffs and Trade (GATT), trade expanded amongindustrialized countries after World War II.
International capital (foreign ownership of assets relative to world income) followed the same pattern as trade. It improved until1914, but international capital didn’t return to the rates it had in 1914 until 1980. Theflow not only increased it changed the things it financed. Before 1914 internationalcapital was used for public projects such as railroads and investment in natural resourcessuch as mining. Now international capital is often used for direct investment inmanufacturing and services.
The main differences between the pre-1914 globalizing period and today’s globalizing period are “the degree and intensity in which the world is being tied together today” and “the sheer number of people and countries able to partake”.
For example in 1900 the daily foreign exchange trading was measured in themillions today it is measured in the trillions.
Today’s period of globalization is on atotally different scale then the period of globalization before 1914. Globalization today istaking the world by storm.Globalization can have a variety of effects on society; it can bring free marketsand democracy to impoverished countries or it can create ethnic tensions and lesssecurity. Even though there are downsides to globalization, the benefits fromglobalization far outweigh the detriments. Many of the benefits and detriments toglobalization concern human rights.For most benefits of globalization there is always a “but”. Globalization isincreasing the quality of life for almost all of the population on earth. But what aboutthose people that aren’t benefiting from globalization. Globalization helps break the boundaries of people possess on the basis of race, gender or religion. But is globalizationcreating a cultural homogeneity. Globalization could be the solution to horrible regimesthat politically and economically suppress their people. But isn’t globalization helping to
5
David Dollar and Aart Kraay, Spreading the Wealth (America and the World: Debatingthe New Shape of International Politics, New York, 2002) 186.
6
Ibid. 186-287.
7
Thomas Friedman, The Lexus and the Olive Tree (Anchor Books, New York, 2000)xvii.
8
Ibid. xviii.
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